In the GBPJPY 4 hourly chart above, the price decline in five waves, it's positively correlated with GU at the moment. A five-wave move is regarded as an impulse pattern, which indicates the direction of the primary trend.
According to Elliot Wave Principle, a three-wave correction in the opposite direction follows every impulse move. In GBPJPY's case, the retracement took the shape of (w)-(x)-(y) double zigzag pattern.
The most interesting thing is that, once the correction is completed the price resumes in the direction of the primary trend. If this count is correct, we can expect the price to start declining from or below the current market price in the days ahead.
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Best of luck on the chart,
Veejahbee.
According to Elliot Wave Principle, a three-wave correction in the opposite direction follows every impulse move. In GBPJPY's case, the retracement took the shape of (w)-(x)-(y) double zigzag pattern.
The most interesting thing is that, once the correction is completed the price resumes in the direction of the primary trend. If this count is correct, we can expect the price to start declining from or below the current market price in the days ahead.
Want to know how I will take this setup? Send DM!
Best of luck on the chart,
Veejahbee.